January 14, 2010, Anchorage, Alaska - In an effort to create more jobs and more incentives for investment in Alaska's oil and gas development, Governor Sean Parnell announced Jan. 14 he will pursue amendments to the current production tax and Exploration Incentive Credit (EIC) programs.

"These refinements to ACES will boost production at existing fields and provide greater incentives for new companies looking to explore for oil and gas in Alaska," Governor Parnell said. "More investment means more jobs for Alaskans."

After a thorough review of ACES and the EIC program by his department, Revenue Commissioner Pat Galvin recommended four changes to the current structure:

Expand existing credits to include a 30% credit for all drilling and well work expenses;

Allow all companies to enjoy the entire benefit of their capital credits in the year they are earned, rather than have to spread the credit over two years;

Eliminate the double standard applied against new explorers by allowing the state to pay for capital credits earned by explorers regardless of their future spending levels; and

Allow for the waiver of interest charges on late payments due to the retroactive application of new regulations.

The Department of Revenue initiated its review of ACES last summer at the direction of Commissioner Galvin. The governor will propose legislation to implement the recommendations in the first weeks of the upcoming legislative session.